Cowen, one of the solar sector’s star analysts, has increased it’s earnings guidance for TSL 2008 from $3.64 to $4.05 and the stock price is off to the races this morning.
No wonder, earnings of $4+ for full year 2008 means that TSL’s 2008 p/e is less than 9, while it’s business (both top and bottom line growth) is growing by more than 100%. We’ve always argued that this is the cheapest solar around, there seem to be plenty of people in agreement…
Apparently, Cowen also raised revenue to $750M (vs. prior $710M), based on shipments of 195MW (in line with 95% coverage of 200-210MW target). Since 15% of poly is covered by the new contract, they boosted gross margin by 50 b.p., to 23.8% (vs. St. 23.1%).
And they see 50%+ upside vs. the market in 12 months and reiterates Outperform.
This last call seems pretty tame to me, to be honest. I repeat, TSL is a business growing at triple digits and it has a 2008 p/e of 9.
I think the issue of whether we would break the 50 day moving average downwards has been settled at least for a while 🙂